'I get BIG savings on my tiny cars - so join the club': Smart ideas to drive down car insurance

Shopping around for the best car insurance deal is the simplest way to cut costs. But there are even more smart ways to slash premiums. The Mail on Sunday looks at a range of often unusual ideas to get cheaper cover.

USE A DASH–CAM

The dashboard camera – or ‘dash-cam’ – can cut your insurance premiums by up to 10 per cent.

The camera – no bigger than a satnav – is typically attached to the windscreen behind the rear view mirror using a suction pad. It records what is going on in front of your car and can be used to help with claims, if you are involved in an accident that is not your fault.

Dinky cars: Andy Carter with some of
his classics

'I GET BIG SAVINGS ON MY TINY CARS - SO JOIN THE CLUB'

Car enthusiasts can often pick up a better insurance deal if they are members of a specialist club.

Drivers of classic cars are among the safest and most drive them less than 4,000 miles a year – a fact recognised by insurers.

Not only can you typically shave at least 15 per cent off insurance premiums but save on other costs too.

Cars built before 1973 are exempt from Vehicle Excise Duty while those built before 1960 also avoid the cost of a yearly MOT.

Andy Carter, 59, of Nottingham, has a stable of cherished classic cars that include a Peel P50 three-wheeler made on the Isle of Man in the 1960s and reckoned to be the world’s smallest production car. It was driven by Jeremy Clarkson on TV’s Top Gear and is worth £60,000. Andy also owns an £80,000 Peel Trident. ‘These classics are lots of fun and being a member of an enthusiasts’ club can save you money not just by driving down insurance costs but also from the help from others it brings,’ he says.

He pays about £120 a year for comprehensive cover with Lancaster Insurance for a single Peel car – but says it would be closer to £80 for less valuable vehicles.

Andy rings several insurers when it’s time for renewal, believing they are not good at rewarding loyalty. Other specialist classic car insurers include Carol Nash, Adrian Flux and Peter James Insurance.

Andy runs the Peel Micro Cars Register and is a member of the Messerschmitt Enthusiasts’ Club as he also owns a £50,000 Messerschmitt TG500 bubble car. The club charges £12.50 a year for postal members.

It is important to mention any club affiliation when calling for an insurance quote.

Dash-cams can immediately show exactly what happened and this saves your insurer money. The device typically costs between £100 and £200 and records on a one-hour loop. After a journey it goes back to the start.

Samantha Dunne, 27, an account manager from Southampton, paid £200 to have a dash-cam fitted to her Volkswagen Golf a couple of months ago after her Peugeot 306 was written off in an accident that was not her fault.

Samantha says: ‘Another motorist went into my car at a roundabout. Although the insurer eventually paid up it took five months of fighting as the driver did not want to admit liability. If a dash-cam had been fitted the case would have been clear-cut.’

In gear: Samantha Dunne has a dash-cam to act as a witness

Samantha was paying about £720 a year for motor insurance with Tesco Bank and after the accident she had to hand over a £350 excess, which was later returned. She now pays £576 a year with Admiral.

Stuart Humphreys, automotive manager at Halfords, which sells dash-cam technology, says its research shows that one in five motorists involved in an accident face a rise in insurance premiums as a result of bogus or misleading information from unscrupulous drivers during the claims process.

‘Dash-cams can act as an independent witness to guard against this and put a stop to the unfair rises in insurance premiums,’ he says.

Roman Bryl, product manager at insurer Swiftcover, which lowers premiums for those with the dashboard camera, says: ‘Dash-cams can significantly improve supporting evidence for policyholders and prove liability in disputed claims.

‘Motorists involved in an accident that is not their fault will save hundreds of pounds and benefit from lower insurance premiums.’

The market is still in its infancy but insurers that will take dash-cam technology into consideration when calculating premiums include Swiftcover and Adrian Flux.

Even if your insurer does not take the technology into account in cutting premiums it could still save you a fortune in a disputed claim.

The RAC launches its own dash-cam in June. It found that a third of motorists would consider installing one because of fears of false ‘crash for cash’ whiplash claims made by other motorists.

GET A BIG BROTHER

A high-tech telematics black box fitted to your car can cut annual insurance premiums by up to 25 per cent.

This ‘big brother’ device fits neatly under the dashboard or steering wheel and records where you are going, your speed and sudden movements made by the car.

It is particularly attractive for young drivers, who otherwise face steep premiums. But although 15 per cent of insurance policies now offer a black box option, less than a million of the 35 million motorists in Britain have opted for one – preferring to pay extra for the freedom of not having an electronic back seat driver.

Safe: Hannah Woolley has a telematics box

Hannah Woolley, 22, of Chipping Sodbury, Gloucestershire, installed a plug-in black box sent free in the post by insurer Direct Line last year to cut the cost of insurance for her Vauxhall Corsa from £340 to £259 a year.

The teaching assistant says: ‘I was a bit worried before fitting the box and thought it might restrict when I could drive but it has not changed my driving habits at all. Fortunately I stick to the speed limit and am a fairly safe driver anyway. If you have nothing to fear from the way you drive there is nothing to lose and it is an easy way to save money.’

Hannah says it even saved her £60 after she was given a fine at a Tesco car park. By providing the telematics information she could prove she had not parked the car in the supermarket all day as initially claimed.

The box, which some insurers may charge to have installed and removed, not only monitors if you are breaking speed limits and driving erratically but can also keep tabs of when you are on the road – with some insurers imposing a curfew to prevent ‘high-risk’ late-night drives.

GO BACK TO SCHOOL

Passing your driving test is just the start of learning how to drive well. The Institute of Advanced Motorists offers membership to its charity association for a year from £32.

It offers a Skills for Life course that can help prepare you for an Advanced Driving Test.

In control: Shannon Hall is an advanced driver

Insurers recognise the benefits of tutoring from a skilled instructor and many offer cheaper motor insurance.

Shannon Hall, 23, of Crowborough in East Sussex, was given Skills for Life lessons as a 21st birthday present by her family. She found that her motor insurance quotes fell from more than £700 a year to £540 for her second-hand Peugeot 206.

Shannon says: ‘Membership opened my eyes to better driving – it was not about pottering along but having greater control behind the wheel.’

Shannon has since traded in her Peugeot for a specially adapted Vauxhall Zafira Tourer after being diagnosed with hypermobility syndrome, which requires foot pedal controls to be adapted so she can drive using only her hands.

Shannon, secretary of the East Sussex Group of Advanced Motorists, says: ‘I was told I could not have had the car without having the advanced motoring skills.’

Motorists can also take a Pass Plus driving test as approved by the Government-backed Driver and Vehicle Standards Agency.

From as little as £110 you can get six hours of practical training to improve your skills. Premiums can be cut by up to a third with advanced motoring lessons but not all insurers recognise their benefits.

HOW TO GET A DEAL THAT'S RIGHT FOR YOU

Price comparison websites such as GoCompare, Compare The Market and Confused are a convenient way to buy car insurance, but make sure you get the right deal at the right price.

Be realistic about how much your car is worth. Insurers only pay market value if it is stolen or written off – so providing an over-optimistic price for the vehicle might simply lead to higher premiums.

Restrict cover to named driver rather than ticking the ‘any driver’ box. Also consider where the vehicle will be parked. Off-road parking should mean lower premiums.

Specialist brokers and price comparison websites can help get you a better deal but it might also be worth calling insurers direct to see if they can beat an offer. Some providers, such as Direct Line, do not include their deals on comparison websites.

Once you have found the best quote don’t rush into signing up –check the small print to see exactly what you get for your money. Important details are the level of excess (the contribution you pay on any claim); cover for medical and legal expenses, personal accident and personal belongings, car stereo and loss of keys; no-claims protection; breakdown cover and insurance; and a courtesy car if yours is off the road.

If you opt for a higher excess you are likely to get cheaper premiums but while £200 might be acceptable £500 could be too high.

For most drivers, a fully comprehensive insurance policy offers peace of mind and can work out cheaper than just third party, fire and theft. Fully comp covers against any damage caused both to your own and to any other vehicle involved in an accident while third party covers against damage to others. Drivers with a more ‘risky’ profile often seek third party cover so insurers push up the price.

If an accident is your fault and the damage is minor it might be worth dipping into your own pocket to foot the bill rather than risk losing a valuable no-claims bonus.